To run Skype on your Android phone, you will need a supported phone
running Android OS version 2.1 or above with least 27MB of free memory
space on your handset and 600Mhz or more processing power. The
supported screen resolutions are 320x240, 240x400, 320x480, 800x480
and 850x480.

So it looks like the app doesn't support your phone's CPU (which oddly seems to be slower than the very earliest Android phones like the G1).

There is more than one official Skype app, it's possible that the one you're using isn't compatible with your phone, but another one might be. See the links in this question to find the Skype apps Can I install Skype on my xperia?

It looks like a knockoff company stole the name of an LG device to trick people.
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Matthew Read♦Nov 17 '11 at 15:52

@MatthewRead oh definitely, doesn't even look like an LG Optimus 3D (and is very obviously missing the second rear camera lens that helps define the "3D" part of the real thing's name) the case reminds me more of a knock-off Nexus One than an Optimus.
–
GAThrawnNov 17 '11 at 17:43